Human Resource Management in Multinational Banks in Tanzania SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Human Resource Management in Multinational Banks in Tanzania
The case examines how the best practices of two banks were organized and managed to provide financial services to a small niche of foreign customers in the mining, tourism and construction sectors in Tanzania. The two banks claimed to be similar in many ways. They both were from countries whose economies were run broadly on neo-liberal lines, in that there was little state intervention in either economy, however, differences existed with respect to how they managed their operations. The case is ideally suited to illustrate the on-going tension and different types of best practices in cross-market integration. It provides opportunities to explore the challenges faced by multinational company banks in managing global workforces, the evolution of the banking sector, and the influence of technology in shaping work in organizations.
Authors :: Paul W. Beamish, Aloysius Newenham-Kahindi
Swot Analysis of "Human Resource Management in Multinational Banks in Tanzania" written by Paul W. Beamish, Aloysius Newenham-Kahindi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Banks Tanzania facing as an external strategic factors. Some of the topics covered in Human Resource Management in Multinational Banks in Tanzania case study are - Strategic Management Strategies, Cross-cultural management, Labor, Leadership development and Global Business.
Some of the macro environment factors that can be used to understand the Human Resource Management in Multinational Banks in Tanzania casestudy better are - – increasing government debt because of Covid-19 spendings, banking and financial system is disrupted by Bitcoin and other crypto currencies, supply chains are disrupted by pandemic , cloud computing is disrupting traditional business models, increasing commodity prices, wage bills are increasing, talent flight as more people leaving formal jobs,
customer relationship management is fast transforming because of increasing concerns over data privacy, geopolitical disruptions, etc
Introduction to SWOT Analysis of Human Resource Management in Multinational Banks in Tanzania
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Human Resource Management in Multinational Banks in Tanzania case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Banks Tanzania, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Banks Tanzania operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Human Resource Management in Multinational Banks in Tanzania can be done for the following purposes –
1. Strategic planning using facts provided in Human Resource Management in Multinational Banks in Tanzania case study
2. Improving business portfolio management of Banks Tanzania
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Banks Tanzania
Strengths Human Resource Management in Multinational Banks in Tanzania | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Banks Tanzania in Human Resource Management in Multinational Banks in Tanzania Harvard Business Review case study are -
Highly skilled collaborators
– Banks Tanzania has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Human Resource Management in Multinational Banks in Tanzania HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Banks Tanzania in the sector have low bargaining power. Human Resource Management in Multinational Banks in Tanzania has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Banks Tanzania to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Banks Tanzania is one of the most innovative firm in sector. Manager in Human Resource Management in Multinational Banks in Tanzania Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Banks Tanzania is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Paul W. Beamish, Aloysius Newenham-Kahindi can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Global Business industry
– Human Resource Management in Multinational Banks in Tanzania firm has clearly differentiated products in the market place. This has enabled Banks Tanzania to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Banks Tanzania to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Banks Tanzania in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Banks Tanzania is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Banks Tanzania has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Banks Tanzania
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Banks Tanzania does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Banks Tanzania is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Banks Tanzania is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Human Resource Management in Multinational Banks in Tanzania Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Banks Tanzania are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Successful track record of launching new products
– Banks Tanzania has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Banks Tanzania has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses Human Resource Management in Multinational Banks in Tanzania | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Human Resource Management in Multinational Banks in Tanzania are -
High operating costs
– Compare to the competitors, firm in the HBR case study Human Resource Management in Multinational Banks in Tanzania has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Banks Tanzania 's lucrative customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Banks Tanzania needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Aligning sales with marketing
– It come across in the case study Human Resource Management in Multinational Banks in Tanzania that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Human Resource Management in Multinational Banks in Tanzania can leverage the sales team experience to cultivate customer relationships as Banks Tanzania is planning to shift buying processes online.
High cash cycle compare to competitors
Banks Tanzania has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Low market penetration in new markets
– Outside its home market of Banks Tanzania, firm in the HBR case study Human Resource Management in Multinational Banks in Tanzania needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Human Resource Management in Multinational Banks in Tanzania HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Banks Tanzania has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Human Resource Management in Multinational Banks in Tanzania, in the dynamic environment Banks Tanzania has struggled to respond to the nimble upstart competition. Banks Tanzania has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow to strategic competitive environment developments
– As Human Resource Management in Multinational Banks in Tanzania HBR case study mentions - Banks Tanzania takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Increasing silos among functional specialists
– The organizational structure of Banks Tanzania is dominated by functional specialists. It is not different from other players in the Global Business segment. Banks Tanzania needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Banks Tanzania to focus more on services rather than just following the product oriented approach.
No frontier risks strategy
– After analyzing the HBR case study Human Resource Management in Multinational Banks in Tanzania, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Human Resource Management in Multinational Banks in Tanzania, it seems that the employees of Banks Tanzania don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Opportunities Human Resource Management in Multinational Banks in Tanzania | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Human Resource Management in Multinational Banks in Tanzania are -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Banks Tanzania can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Human Resource Management in Multinational Banks in Tanzania, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Banks Tanzania to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Banks Tanzania to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Banks Tanzania in the consumer business. Now Banks Tanzania can target international markets with far fewer capital restrictions requirements than the existing system.
Creating value in data economy
– The success of analytics program of Banks Tanzania has opened avenues for new revenue streams for the organization in the industry. This can help Banks Tanzania to build a more holistic ecosystem as suggested in the Human Resource Management in Multinational Banks in Tanzania case study. Banks Tanzania can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Banks Tanzania is facing challenges because of the dominance of functional experts in the organization. Human Resource Management in Multinational Banks in Tanzania case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Banks Tanzania in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Using analytics as competitive advantage
– Banks Tanzania has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Human Resource Management in Multinational Banks in Tanzania - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Banks Tanzania to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Banks Tanzania to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Banks Tanzania can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Banks Tanzania can use these opportunities to build new business models that can help the communities that Banks Tanzania operates in. Secondly it can use opportunities from government spending in Global Business sector.
Leveraging digital technologies
– Banks Tanzania can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Manufacturing automation
– Banks Tanzania can use the latest technology developments to improve its manufacturing and designing process in Global Business segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Banks Tanzania can develop new processes and procedures in Global Business industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Threats Human Resource Management in Multinational Banks in Tanzania External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Human Resource Management in Multinational Banks in Tanzania are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Banks Tanzania with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Banks Tanzania.
Shortening product life cycle
– it is one of the major threat that Banks Tanzania is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Consumer confidence and its impact on Banks Tanzania demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Banks Tanzania in the Global Business sector and impact the bottomline of the organization.
Stagnating economy with rate increase
– Banks Tanzania can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Technology acceleration in Forth Industrial Revolution
– Banks Tanzania has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Banks Tanzania needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Increasing wage structure of Banks Tanzania
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Banks Tanzania.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Banks Tanzania needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Banks Tanzania can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Human Resource Management in Multinational Banks in Tanzania .
Regulatory challenges
– Banks Tanzania needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Global Business industry regulations.
Weighted SWOT Analysis of Human Resource Management in Multinational Banks in Tanzania Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Human Resource Management in Multinational Banks in Tanzania needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Human Resource Management in Multinational Banks in Tanzania is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Human Resource Management in Multinational Banks in Tanzania is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Human Resource Management in Multinational Banks in Tanzania is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Banks Tanzania needs to make to build a sustainable competitive advantage.
